Portugal Colonial - Schmidt admits Wallabies have mountain to climb against Lions

The home side narrowly avoided a morale-sapping loss to the Pacific Islanders in Newcastle, needing a 79th minute try to save face and win 21-18.

It was an underwhelming performance two weeks out from the first Test in Brisbane against a British and Irish Lions squad brimming with talent and depth, who have won all three of their warm-ups so far.

"We didn't play well enough today for people to have the expectation that we're going to come bowling into Brisbane and knock the Lions over," Schmidt told reporters.

"But I'm not sure that expectation was there before today.

"We're just going to have to build that quiet resolve, inch by inch."

After grinding to a 14-0 advantage, the Wallabies squandered chances to build an even bigger lead with a catalogue of errors letting Fiji back into the game.

They were staring down the barrel of defeat before skipper Harry Wilson secured the win as the clock ticked down.

"Some of it was frustration and some of it was relief to find ourselves in that situation after we built a nice lead early in the game," Schmidt said.

"It was certainly a relief when Harry got over and dotted it down."

A concern for Australia will be the amount of dropped ball and missed tackles, along with their lack of composure when the pressure was on.

Schmidt said they must learn to cut out the errors and take their chances or pay the price.

"We've got to iron those out to be super accurate because if you don't nail your opportunities, you don't get to build their scoreboard pressure," he said.

The Fiji match was Australia's only Test to fine-tune before facing the Lions, with Schmidt conceding his players may been distracted by the upcoming series.

"I think it is inevitable to a degree ... we were watching the game last night with the Waratahs playing the Lions," he said.

"I've no doubt that that might leak in, but I certainly wouldn't be looking to use it as an excuse."

Ferreira--PC